Investing in MicroStrategy Stock vs. Spot Bitcoin ETFs
According to Bill Miller IV, CFA at Miller Value Partners, choosing to invest in MicroStrategy (MSTR) stock is a better option than opting for Spot Bitcoin ETFs. Miller highlighted the limitations of these ETFs, such as liquidity restrictions, and suggested that investing in MSTR allows investors to indirectly bet on Bitcoin.
Advantages of MicroStrategy Stock
Miller emphasized that MicroStrategy is currently the largest holder of Bitcoin, making the MSTR stock a gateway to leverage Bitcoin’s profits. Additionally, he noted that the stock offers better liquidity compared to Bitcoin ETFs. Furthermore, while Bitcoin ETFs charge fees, investing in MicroStrategy does not incur any additional charges. The MSTR stock also provides significant flexibility in terms of Bitcoin adoption.
MSTR & Spot BTC ETF Performance
Although Miller encourages investment in the MSTR stock, its recent performance has been unfavorable. On January 12, the stock experienced a significant decline of 9.45%, reaching $485.53 and losing 50.65 points. Currently, it holds a market cap of $7.04 billion.
MicroStrategy CEO Michael Saylor’s frequent selling of MSTR shares before the SEC’s decision on Spot Bitcoin ETF suggests his interest in capitalizing on BTC profits during the peak of ETF hype.
In addition, the approved Spot Bitcoin ETFs did not perform well on their second day of trading.
Hot Take: Mixed Performance for Spot BTC ETFs
The Spot Bitcoin ETFs experienced varied performance on their second day of trading. While some saw significant losses, others managed to gain slight value. This mixed performance indicates uncertainty and volatility in the market surrounding these new ETFs. It remains to be seen how these ETFs will perform in the long run and whether they will be able to meet investors’ expectations.
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